Farmers have been asking the government to subsidise the agriculture sector by cutting sales tax on inputs and slashing power tariff for tube wells. PHOTO: APP
This was stated by National Food Security and Research Secretary Sirat Asghar while talking to The Express Tribune.
The secretary said provincial agriculture authorities and farmer associations would participate in the deliberations in an effort to float proposals for incorporating them in the upcoming federal budget.
In an earlier meeting held between Prime Minister Nawaz Sharif and Federal Minister for Food Security and Research Sikandar Hayat Khan Bosan, the PM agreed that an effective policy should be framed for the agriculture sector to make it more efficient and productive.
The premier asked the ministry to consult all stakeholders in order to take their input.
Asghar said the primary setback to Pakistani farmers was the high cost of production because of high power tariffs and transportation charges as well as certain taxes on agriculture inputs, which needed to be revised.
He said despite bumper crops in successive years, farmers were facing problems in achieving a better price for their hard work because prices were higher in the country compared to the international market.
Farmers have been asking the government to subsidise the agriculture sector by cutting sales tax on inputs and slashing power tariff for tube wells, which will significantly reduce the cost of production and ultimately reduce crop prices.
They particularly mention that the Indian agriculture sector is highly subsidised and this is the reason why their products are much cheaper and farmers are getting the opportunity to sell them in the international market.
The ministry was of the view that the increase in crop support price to protect farmers was not only against the interest of consumers, but it also discouraged export of Pakistani products to the international market due to comparatively higher rates.
The solution what the authorities and farmers think is in reducing the cost of production through efficient policies, which will not only benefit the growers, but also the consumers in addition to remaining helpful in promoting agriculture exports.
Published in The Express Tribune, April 19th, 2015.
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